Which of the Following Is the Best Example the Income

question 138

Multiple Choice

Which of the following is the best example the income effect of a price change?

• A) When Gary's income doubles, his wine consumption doubles, the price of wine remaining unchanged.
• B) When the price of diesel falls, consumers start purchasing more petroleum-powered vehicles.
• C) While purchasing shirts and jeans, when the price of a pair of jeans falls, Jack purchases more of both jeans and shirts.
• D) While purchasing pens and pencils, when the price of pens falls, Jill purchases more pens and fewer pencils.

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